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Wednesday January 21, 1976
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This Day In 1970's History: Wednesday January 21, 1976
  • President Ford listed proposed reductions totaling $20 billion in federal programs and promised Congress additional tax reductions if it accepted his plan. He predicted it would lead to a balanced budget within three years and would improve prospects for the economy to stay on a sustainable growth path. Defense spending would rise about $10 billion to exceed $100 billion for the first time. About 60 federal programs in health, education, child nutrition and social services would be consolidated into block grants to the states. [New York Times]
  • There was bipartisan consensus among congressional budget makers that Congress would reduce the defense appropriation and reject the block grant plan. Democrats said that the President underestimated the unemployment that would result from his proposals and overestimated the states' ability to pick up the slack left by cuts in social programs. They said that his recommendations would benefit the rich. Republicans hailed it for fiscal restraint. [New York Times]
  • Senator Edmund Muskie charged that President Ford's economic plans were "penny wise and pound foolish" and urged a rejection of those who counsel "go back and give up." Delivering the televised congressional rebuttal to Mr. Ford's State of the Union message, he said the nation must be ready to change to meet new needs. [New York Times]
  • The Labor Department reported that the Consumer Price Index rose again in December, but at a slower rate, making the 1975 overall increase of 7 percent the smallest in three years. But it remained very high by earlier standards. [New York Times]
  • Sam A. Jaffe, a former television correspondent, has told the Senate intelligence Committee that he reported regularly to the Federal Bureau of Investigation on Soviet delegation activities while covering the United Nations in the late 1950's and early 1960's. He confirmed in a telephone conversation that he worked as an unpaid informant at the F.B.I.'s request and was regularly debriefed when on leave from his later post in Moscow. [New York Times]
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